What Types of Health Insurance Policies are Available in India?

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Health insurance in India is generally a contract where the insurer covers the medical expenses of an individual in exchange for a regular premium. With this policy, you can get coverage for healthcare services, such as hospitalisation, surgeries, consultations, and diagnostic tests.


In fact, the best part is that there are numerous types of health insurance policies in India to cater to the diverse healthcare needs of every individual and family.


Eligibility Criteria to Buy Health Insurance in India



  • Residency Criteria: The policyholders have to be residents of India.

  • Age limit: The minimum age to purchase a health insurance policy is 18 years for Adults and 91 days or 3 months for children. Meanwhile, the maximum age limit is 65 years for adults and 25 years for children. Some plans like Super Star from Star health offers no limit on entry age for adults.

  • Medical Screening: Senior citizens may be required to pass a medical screening test before applying for private health insurance.


What are the Types of Health Insurance in India?



  • Individual Health Insurance: For unmarried individuals, this policy is ideal to cover their medical expenses.

  • Family Floater Insurance: This policy covers the entire family of the policyholder, including spouse, children, and dependent parents under a single sum insured.

  • Senior Citizen Health Insurance: This healthcare is specifically designed for people aged 60 and above who often have pre-existing conditions (e.g. hypertension and diabetes) and higher hospitalisation needs.

  • Critical Illness Insurance: This policy provides a lump sum payout upon the diagnosis of specified serious illnesses, such as cancer or a heart attack. Here, the insured amount can be used for both treatment and personal expenses of the policyholder.

  • Group Health Insurance: With this type of insurance, employers cover the healthcare needs of their employees under a single policy.

  • Government Health Schemes: The government of India also introduced a healthcare scheme called Ayushman Bharat (PMJAY) in 2018. It provides ₹5 lakh coverage for low-income families.


What are the Benefits of Buying a Health Insurance Policy In India?



  1. Protection From Medical Inflation


With medical inflation in India rising rapidly at 12% to 15% annually, as reported by the Economic Times, health insurance is your ideal safety net to reduce financial burden.



  1. Cashless treatment


Most reputable health insurance providers in India provide cashless treatment in their associated network hospitals. Therefore, you do not have to face the hassle of making an upfront payment during sudden hospitalisation.



  1. Comprehensive Coverage


With comprehensive health insurance, you can get protection against a wide range of medical expenses. This policy covers pre-existing conditions (with a 12 to 36 month waiting period), daycare procedures, pre- and post-hospitalisation, and more.



  1. Tax Benefits


Under Section 80D of the Income Tax Act, 1961, non-senior citizens are eligible for tax deductions for up to ₹25,000, while senior citizens can save up to ₹50,000.


Final Words


Due to the rise in health care costs in India, health insurance ensures financial protection from sudden medical emergencies.


So, purchase this policy now to timely access quality healthcare without draining your hard-earned savings.